Sony cuts PlayStation 3 prices 17%

Sony has dropped the price of the PS3 by $50 in the US and ¿50 in Europe.

The fierce battle among video game consoles has become more competitive with the announcement from Sony Computer Entertainment that it is lowering the price of its PlayStation 3 (PS3) gaming device.

The announcement, made at the annual GamesCon trade fair for video games being held in Germany now means the computer entertainment system with a 160GB hard drive will cost US$249 (Dh914.55) in North America and €249 (Dh1,323.76) in Europe territories instead of its previous price of $299 and €299.

The prices have similarly been lowered in Japan, with the console set to cost ¥24,980 (Dh1,190) instead of ¥29,980.

"The new price will make the PS3 more accessible than ever before," said Jack Tretton, the president and chief executive of Sony Computer Entertainment.

The 17 per cent price cut comes as Sony tries to make its five-year-old computer gaming system more competitive against Microsoft's Xbox 360 and Nintendo's Wii. The PlayStation brand has failed to reclaim the number one position it held on to for many years as the world's most popular gaming console ever since Microsoft introduced its Xbox 360 device into the market in 2005.

The Japanese electronics maker, however, has shifted some of its focus to handheld gear as it has experienced success with its PlayStation Portable devices over the past few years. The company will be looking to build on that success when it also unveils its next handheld console, the PlayStation Vita for North American and European markets early next year.